Catalyst Pharmaceuticals Inc (CPRX)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	163,889	142,797	68,149	65,117	71,410	62,037	115,549	99,406	83,079	66,917	54,498	45,060	39,482	41,610	74,621	72,220	74,983	71,476	41,766	42,946
Total stockholders’ equity	US$ in thousands	727,632	660,941	608,655	561,412	387,881	348,548	375,294	333,661	300,421	270,041	241,092	220,221	206,831	198,661	188,944	178,651	169,598	156,628	111,201	99,676
ROE		22.52%	21.61%	11.20%	11.60%	18.41%	17.80%	30.79%	29.79%	27.65%	24.78%	22.60%	20.46%	19.09%	20.95%	39.49%	40.43%	44.21%	45.63%	37.56%	43.09%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $163,889K ÷ $727,632K
= 22.52%

Catalyst Pharmaceuticals Inc's return on equity (ROE) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ROE started at a relatively high level of 43.09% in March 2020, indicating strong profitability generated from shareholders' equity. It slightly decreased to 37.56% by June 2020 but then increased significantly to 45.63% by September 2020, reflecting improved efficiency in generating profits from equity.

The ROE remained relatively stable around the 40-45% range for the next few quarters, demonstrating that Catalyst Pharmaceuticals Inc was effectively utilizing its shareholders' equity to generate returns. However, there was a notable decline to around 20% in the latter half of 2021 and the first half of 2022, indicating a decrease in profitability relative to the equity invested.

Subsequently, there was a gradual improvement in ROE, reaching 30.79% by June 2023, before decreasing again to 18.41% by the end of December 2023. The ROE continued to fluctuate in 2024, starting at 11.60% in March and June, then experiencing an increase to 22.52% by December 2024.

Overall, Catalyst Pharmaceuticals Inc's ROE exhibited volatility throughout the period, indicating varying levels of efficiency in generating profits from shareholders' equity. Management should focus on sustaining profitability levels to ensure consistent returns for shareholders in the long term.